1Are you a teacher looking to buy a home and need help with financing? Please consider some of the special mortgage programs that cater specifically to educators. In this article, we are excited to share 4 of the top providers that currently offer teacher home loans and teacher mortgage programs.
Our 5 Top Home Loan Programs for Teachers
Our list of teacher home loan providers in 2020 include:
- LendingTree for Teachers
- Educator Mortgage Program
- Teacher Home Advantage
- NEA Home Financing Program
- Teacher Next Door
Why Should you Explore Teacher Home Loans?
First off, these programs were created with educators in mind. They may offer some perks and/or discounts that you may not get from traditional financing options. One of the perks includes discounted closing costs or lower interest rates. Some programs even can donate to your school. All this considered, teacher home loans might very well be what you are looking for when you wish to finance the purchase of a home.
Without further ado, here are the 5 best teacher mortgage programs available for professional educators:
1). LendingTree Teacher Home Loans
Our #1 recommended provider of teacher home loans is LendingTree, where you can easily compare up to five educator-friendly home loan offers!
Whether you are purchasing a home, refinancing, looking for a home equity line of credit or seeking a reverse mortgage, LendingTree has our highest recommendation.
If looking at any of the other options that follow, it is highly recommended you take a look at LendingTree first! This will give you the most options. Furthermore, it can help you make an informed decision on which home loan for teachers is best for you! Highly recommended!
2). Educator Mortgage Program
- Discounted Closing Costs – Supreme Lending is offering up to $800 in reduced closing costs to educators. If you qualify, you will receive a credit on your HUD-1 settlement statement for up to $800.
- Discounted Real Estate Agent Fees – The Educator Mortgage Program looks to work with real estate agents who want to give back. As an educator, you will receive a credit on your HUD-1 settlement statement up to $800 from participating Real Estate Agents. These funds can be used for any fees, prepaids, seller fees, or new escrow account set up for your new loan.
- Fast Loan Process – Supreme Lending emphasizes that educator clients are given highest priority. Educator loans are handled expeditiously so as to ensure “a smoother and more enjoyable experience.”
- Donation to Your School– With the Educator Mortgage Program, a donation of to $200 will be made to the school program of your choice. If you work with a participating real estate agent, an additional $200 will be donated, for a total of $400, to the school program of your choice!
Visit the Educator Mortgage Program’s website for more info on their teacher home loans. They offer various home buyer mortgage programs including FHA loans, Fannie Mae, Freddie Mac, VA, USDA, Jumbo and more.
3). Teacher Home Advantage
The Teacher Home Advantage program by Pacific Home Mortgage offers various options for teacher home loans. These range from:
- FHA Loans – Federally backed loans with a low fixed rate, great for the educator who is a first time home buyer.
- Conventional Loans – These are not backed by the government and usually require a larger down payment. However, one advantage of these loans for teachers is that monthly mortgage insurance is not generally required.
- USDA Loans – 0% down loans that are insured by the government. These loans are only offered in “rural” areas. The fact that these loans require no down payment puts home ownership within the reach of many educators.
- VA Loans – If you are a veteran, this could be a great option for you. Like the USDA loan, it does not require a down payment.
- Home Path Program – This program is only available for the purchase of Fannie Mae owned homes. It offers educator borrowers low down payment options, flexible terms, no mortgage insurance and no appraisal fees.
- “Making Home Affordable” Program – Teacher Home Advantage works directly with this program. Basically, it includes opportunities to help borrowers make their monthly payments more affordable. In other words, it allows homeowners the chance to decrease their current mortgage payments, even if they’re “upside down” in their home.
- Teacher Next Door – This program (more specifically HUD’s Good Neighbor Next Door Sales Program) offers Pre-K through 12th grade teachers a wonderful opportunity. Make a contribution to community revitalization while receiving a substantial 50% discount on the list price of a home! The limitations of this program are that you must commit to live in the property for 3 years, and qualifying homes must be located in HUD-designated revitalization areas only.
4). NEA Home Financing Program®
Offered through Wells Fargo Home Mortgage, the NEA Home Financing Program® is offered as a benefit of the NEA Member Benefits program.Some of the features of this program include:
- Competitive interest rates and fees
- Low down payment options
- A wide variety of home financing choices
- Conventional and jumbo loans, with both purchase and refinance programs available
- As an NEA Member bonus, you’ll receive a $500 award card when you close a purchase or refinance
5). Teacher Next Door Mortgage
The Teacher Next Door mortgage program is a HUD managed program and is tailored to educators looking to purchase housing. It introduces educators to federal, state, and local programs that provide payment assistance to those seeking mortgage loans. We touched on this program a bit when discussing the Teacher Home Advantage Program above.
Some of the benefits the Teacher Next Door mortgage program offers for educators looking for their new primary residence include:
- Down payment assistance: when an educator just doesn’t have enough money saved for a down payment, then a grant or loan can be issued with a low-interest rate.
- First-time buyer assistance: if you are a first-time home buyer or you haven’t owned a home within the last three years and are looking to get your first mortgage, then this home buying program offers assistance. Some of this assistance may even include the ability to buy a home without any money down.
- No Fees: with this program, there are no application fees or other upfront costs to worry about.
In addition to these benefits, the lender will work with the educator when it comes to filling out the mortgage loan applications. This significantly helps streamline the process. This program is run by the federal government. While some may feel it is too good to be true, it truly is an option for teachers that are looking to be introduced to programs and other discount and down payment assistance opportunities that may be available.
State Teacher Home Loan Options
Many states have teacher home loan programs that are unique to that particular state. For example, we have put together a guide to teacher home loans in California and will be adding info about other states soon!
Down Payment Assistance Program
Regardless of occupation, there are several other organizations set to offer assistance to those people who are looking forward to becoming homeowners. Down payment assistance programs (DPA programs) are run by federal, state, and local governments, as well as charities and nonprofit organizations nationwide.
The Teacher Next Door program from above, for example, is one such program that can put you in touch with down payment assistance programs near you.
However, there are different resources available to those in different states, along with varying qualifications for each program.
To learn more about down payment assistance programs in each state, you can check out the Mortgage Reports guide today. For programs specific to teachers, check out our article on help for teachers buying homes.
Explore your Teacher Home Loan Options Today! When searching for your teacher home loan, do not forget to compare rates and other benefits. Again, our highest recommendation is to start your comparison shopping on LendingTree today HERE. Do your research today to find more affordable housing options and a loan program that works well with your situation.
Teacher Home Loan FAQ
Is a home loan for teachers really worth it?
As long as you qualify for the right home loan program as a teacher, it can prove to be beneficial. Many people find that they can save thousands of dollars with the programs that are available in their area, and the hassles involved in the process are minimal when compared to more traditional routes.
Are teacher home loans actually scams?
While some may seem too good to be true, the teacher home loan programs we have outlined for you above are not scams. They are legitimate mortgage programs for educators to consider. Any government-run down payment assistance program is also trustworthy and legitimate, as well.
What other programs or teacher mortgage discounts did we miss?
Homes for Heroes is a nationwide network that includes real estate agents, mortgage and local business professionals. They offer home loan discounts to a select group of home buyers. The program first started in response to 9/11 but has grown into a program that can help many save thousands of dollars. In addition to honoring first responders, the Homes for Heroes program has also added teachers to its list.
To qualify for this assistance, you need to be a certified Pre-K to 12th-grade teacher. You can save upwards of $2,400 in fees on a home that costs $250,000.
Why should you explore teacher home loans?
As an educator, you should explore teacher home loans because they were specifically designed for you. They offer perks and discounts that you might not be able to find with traditional financing options, including lower interest rates and discounts on closing costs and other fees.
Are there FHA loans available for teachers?
FHA home loans for teachers and the education filed include programs offering low down payments that can be as low as 3.5 percent. The homebuyer should have a credit score of at least 620. They can also find refinance loan-to-values up to 97.15 percent with an FHA loan.
What is a homebuyer education course?
A Homebuyer Education Course is a certified web-based program for prospective first-time homebuyers. The course exceeds the national industry standards and helps create knowledgeable buyers that are prepared for homeownership.